[runnerup]

Walmart is the largest employer in 21 states[0]. How would they exit operations in a state and still earn income from their brick and mortar stores in that state? Sure, they could move some centralized distribution centers if they're already kind of close to a convenient border, but for the most part they need the employees they have in each state because they're fundamentally a last-mile organization.

That said, NLRB/FTC/FCC/CFPB/etc regulatory rules are typically quickly reversed after presidents from opposing political parties take office. They are extremely weak on moderate timescales, compared to statutory legislation, which tends to stick around more often between shifts in power between parties.

0: https://www.visualcapitalist.com/walmart-nation-largest-empl...

[phpisthebest]

For walmart it would be easy

1. Automation.. More Self Checkouts, more Kiosks, etc

2. Reduce local services. Many of them would become unprofitable anyway. This would be Deli, Custom Meat cutting, Fresh Meals, etc etc. This would be either outsourced or replaced with Regional Service servicing many stores to reduce head count

3. More Outsourcing. Manufacturers will stock their products on the shelfs not Walmart employees, Contractors will clean the stores not Walmart employee's, etc etc. Walmart will quickly become not the largest employer, and 100's of new small businesses that are likely under the threashold to be covered under these new laws will popup up to supply walmart with labor.

Some of this is already happening today as labor costs raise in the market, increase unionization will accelerate this.

[AnthonyMouse]

> How would they exit operations in a state and still earn income from their brick and mortar stores in that state?

Sell a store to an independent operator who in turn hires workers, then sell goods to the independent operator, something like that.

[aaomidi]

> Sell a store to an independent operator who in turn hires workers, then sell goods to the independent operator, something like that.

NLRB has recently ruled that in these cases you're still _employee of the parent company_ when it comes to companies using this as an anti-union tactic. It's very obvious to anyone when a company is actively using this as an anti-union tactic.

[AnthonyMouse]

Is it obvious though?

Maybe it is when they turn the store they're "closing" into an "independent" store "owned" by the previous store manager who then enters into an exclusive purchasing contracts with the previous owner. But then they'll do the nearest thing which is less obvious.

How does a rule like that even work? If an independent store makes wholesale purchases from both Walmart and Target, are its employees supposed to be employees of Walmart or employees of Target?

[aaomidi]

When Walmart does it, as they're getting unionized, its obvious.

This is why ideally, this is supposed to have a few judges look at the realities of the case and the various (yes, including circumstantial) evidence to make a determination here.

The rules are don't try to get out of having a unionized employee base using _business tactics_. The example you gave is obvious that its not anti-union.

[AnthonyMouse]

> When Walmart does it, as they're getting unionized, its obvious.

Does what? Make any change to their operations whatsoever?

Suppose they want to close the store while this is happening. Then they no longer have a local store, but they still have a logistics operation capable of supplying a store, so they solicit some other local store that wants to be supplied. That's exactly what you'd expect anyone to do who has a regional warehouse and no longer has a local store, regardless of anything happening with a union.

Is "it" supposed to be closing the store? Their underlying business model is to operate with low margins to keep prices down and make it up on volume. If their costs increase as a result of a union it could easily make the store unprofitable, or less profitable than the market value of the real estate (currently quite high), because then a competitor could undercut them on price. Are they obligated to keep operating an underperforming store forever?

I honestly don't get it. There is a prevailing local wage for retail workers, and customers are price sensitive. A union that only secures the prevailing wage is collecting dues and accomplishing nothing. A union that tries to non-trivially increase the labor costs at that store makes the store uncompetitive, so either the company finds a way to avoid that or they close the store. Neither of those is the union doing the workers any good.

[runnerup]

In this hypothetical, communities would see the same effects as if Walmart chose not to exit. They would just shop and work at "Not-Walmart", same as the old Walmart.

Some might argue prices might increase due to an additional corporate layer, but then the question I would have is why wouldn't Walmart just raise the prices themselves and take those extra available profits for themselves? I'd assume Walmart is already doing what they can to maximize net profit.

[AnthonyMouse]

> In this hypothetical, communities would see the same effects as if Walmart chose not to exit. They would just shop and work at "Not-Walmart", same as the old Walmart.

Not-Walmart is a different company that doesn't have a union, and if they should get one, actual Walmart can start selling goods to some different Not-Walmart who doesn't. Then Not-Walmart #2 drives Not-Walmart #1 out of business by offering lower prices if the union manages to increase Not-Walmart #1's labor costs.

After people have seen this happen they realize the union can't actually secure them more than the wages available in the free market without causing them to lose their jobs, so when they take a job at Not-Walmart #2 they wonder why they would want to spend time organizing another union and paying dues.

> Some might argue prices might increase due to an additional corporate layer, but then the question I would have is why wouldn't Walmart just raise the prices themselves and take those extra available profits for themselves?

These kinds of operations often have minimal overhead. Existing Walmart pays a salary to a store manager. Not-Walmart is owned by the person who would have been the store manager and makes "profit" equal to what Walmart would have had to pay in salary.